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2026 Supreme(Online)(Mad) 48321

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mummineni Sudheer Kumar, J
R. Shanmugaperial Tamilselvi – Appellant
Versus
State Of Tamil Nadu – Respondent
W.M.P.(MD)Nos.11156 to 11158 of 2026



Advocates:
For the Appellants/Petitioners: K. Ragatheesh Kumar, Isaac Chambers
For the Respondents: K. Porkodi, Chamundi

State authorities cannot initiate recovery of excess salary payments from retired or serving employees based on refixation of pay without formally amending the applicable Fundamental Rules, and must ensure pensionary benefits are aligned with last drawn pay until such procedural requirements are met.

Headnote:The petitioner challenged the refixation of pay and the subsequent recovery of amounts initiated by the respondents following earlier government orders. The court examined the legality of such recovery and refixation in light of previous judicial mandates regarding the amendment of Fundamental Rules and the prospective application of pay scales. The core issue was whether the recovery of excess payments from retired employees and those in service, based on unilateral refixation, was permissible before appropriate amendments to the relevant service rules. The court determined, following established precedent, that no recovery should be effected in the absence of a formal amendment to the rules, and that pensionary benefits must be computed based on the last drawn pay. The writ petition is disposed of with specific directions for the respondents to refrain from recovery and to ensure compliance with the guidelines laid down in the referenced batch of writ petitions.

Table of Content
1. procedure for pay fixation and protection against recovery of excess payments for employees. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)

O R D E R

Mrs.K.Porkodi, learned Government Counsel, takes notice for the respondents 1, 2, 4 and 5. Mrs.Chamundi, learned counsel, takes notice for the third respondent.

2. With the consent of both sides, this writ petition is disposed of at the admission stage.

3. Heard the learned counsel for the petitioner and the learned Government Counsel and counsel appearing for the respondents.

4. The present petition has been filed against orders passed by the respondent authorities re-fixing the pay of the petitioner and ordering for recovery of certain amounts pursuant to refixation of pay in terms of G.O.(Ms.)No.234, Finance(Pay and Cell) Department dated 01.06.2009 and G.O.(Ms.)No.23, Finance(Pay and Cell) Department dated

12.01.2011.

5. Mrs.K.Porkodi, learned Government Counsel appearing for the respondents 1, 2, 4 and 5 fairly submitted that an identical issue has fallen for consideration before a co-ordinate bench of the Principal Seat of this Court in W.P.No.12275 of 2024 and batch and the said batch of writ petitions have been disposed of issuing various directions at paragraph 85 of the said order, and as such this writ petition can also be disposed of on the same lines.

6. In response to the same, the learned counsel appearing for the petitioner has also agreed for the same.

7. In the light of the above, this Court, after perusing the order dated 02.03.2026, is of the considered view that this writ petition also can be disposed of in the light of various directions issued in W.P.No. 12275 of 2024 and batch dated 02.03.2026. The said directions issued at paragraph No. 85 of the said order reads as under:

''i) The impugned order directing the fixation of the selection grade/special grade scale of pay at the first promotional level and 2nd promotional level is set aside to the extent that there shall be no recovery of amount, which has already been paid, from the petitioners;

ii) Insofar as the petitioners, who have retired from service is concerned, no amount shall be recovered on the basis of the impugned order from the retiral benefits/pensionary benefits of the petitioners with regard to the amount already paid;

iii) Insofar as the petitioners, who are still in service, no amount shall be recovered on the basis of the impugned order from the salary of the petitioners with regard to the amount already paid;

iv) In case any amount has already been recovered from any of the petitioners towards excess payment made in the selection grade scale, the same shall not be refunded to the petitioners and the respondents shall refix the selection grade scale of pay of the said petitioners after amendment to FR 22- B and, thereafter, upon computation, if any amount is due and payable to any of petitioners, the same shall be paid by the respondents forthwith;

v) Until FR 22-B is amended so as to include the directions given in G.O. Ms. No.63305/Pay Cell/2010-1 dated 8.11.2010, more particularly para 4 (i) of the said Government Order, no action shall be taken by the respondents to refix the scale of pay of the petitioners and similarly placed persons;

vi) Subject to amendment, if any, that may be made to FR 22-B, with reference to G.O. Ms. No.63305/Pay Cell/2020-1 dated 8.11.2020, the respondents are at liberty to revise the salary of the persons who are in service by refixing their scales of pay in the selection grade as also the pensionary benefits of the pensioners by refixing their scales of pay in selection grade in line with the amendments that may be made to FR 22-B for computing the admissible pension payable based on para 4 (i) of G.O. Ms. No. 63305/Pay Cell/2010-1 dated 8.11.2010, which shall be applicable only prospectively and not retrospectively;

vii) Pursuant to the amendment, if any, made to FR 22-

B, upon refixation of the scales of pay of the petitioners, and computing the revised pay tha

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